System and method for using a financial condition algorithm to process purchases and advertisements

Abstract

The system provides a probability of loan default to a purchaser to aid in purchase decision making and financial planning. A user creates an account with a purchasing system prior to purchasing a product and / or service. The user receives an indication of a purchasing transaction of a product by the user. Prior to completion of the purchasing transaction, the system performs an analysis of a loan default probability or financial condition of the user presented as an analysis. The system presents an interactive notice to the user indicating that the loan default probability or financial condition is above a threshold and receives from the user via the interactive notice one of an indication to complete or discontinue the purchasing transaction.

Description

PRIORITY[0001]The present application claims priority to Provisional Application No. 61 / 715,508, filed Oct. 18, 2012, the content of which is incorporated herein by reference in its entirety.BACKGROUND[0002]1. Technical Field[0003]The present disclosure relates to purchasing of products and / or services and more specifically to a system and method of providing a probability of default value or a financial condition evaluation to a purchaser to aid in making purchase decisions.[0004]2. Introduction[0005]It is often necessary to provide purchasers with financial loans to cover a portion of a large purchase such as a home, automobile, boat, college education, furniture, etc. Credit card companies and other entities that provide financial loans to individuals utilize credit scores to evaluate credit risk and determine whether to give loans. A credit score is computed based on a purchaser's credit history that includes information such as past borrowing and repaying of loans. From the cre...

AI Technical Summary

Benefits of technology

[0009]What is needed is a system that can identify the financial condition of a person or a household, or a business or any entity, and then utilize that information in an algorithm that will analyze their purchasing decisions and report or prevent purchases that would damage their financial condition. Their financial condition may be their probability of default on one of their loans (car loan, mortgage, student loan, etc.), or may relate to their retirement plans (i.e., they are on a track to retire at 65, but this purchase will delay that track until 70) or some other aspect of their financial condition. A system is needed that provides more information than strictly utilizing credit scores to help purchasers make purchasing decisions. Once the system is set up, users can proceed to go about their purchasing decisions without worrying about how their purchases affect their financial condition because the system will monitor their purchases and warn them of a purchase that is problematic before it is completed. Because data about purchasers' likelihoods of defaults on loans is available via financial software, the data can be used in a manner that aids a user (and a merchant) in determining whether a particular purchase should be made. One aspect of this disclosure is that it operates in a way that users can just go about their purchasing decisions in the normal fashion without thinking about their overall financial strategy. The system, in one embodiment, intercepts purchases after they are initiated and can stop processing those purchases that would be detrimental to the financial condition of the purchaser.

[0016]In another embodiment, the loan default probability or financial condition is utilized in maintaining an individual's financial portfolio in good financial health. A user can utilize the purchasing system to not only alert the user of potential poor financial choices during a financial transaction, but can use the system to alert the user when a loan default probability or financial condition rises above the established threshold due to external events such as a stock market crash. The system can periodically generate a loan default probability or financial condition and compare it against the threshold. When the probability rises to an unacceptable level, the system can suggest ways to keep the probability acceptable such as transferring additional money into an IRA account to account for money lost during the stock market crash. In this regard, utilizing the algorithm, a plan can be proposed in which additional payments to retirement, or assets to be sold, etc. can be implemented. The user can evaluate the plan and click “yes” or interact in any fashion with a proposal interface to cause the plan to be implemented. Then the user can continue to go about their normal life making purchases without thinking about the plan because it will be implemented and actively operating.

Problems solved by technology

Currently, financial software can provide financial snapshots for users but do not provide any mechanism for automatically alerting users during a potentially poor financial transaction.

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